Wind, Mines and Rails Play Big Roles in Ontario's First-Quarter 2016 Project Kickoffs

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Researched by Industrial Info Resources (Sugar Land, Texas)--Ontario will see first-quarter 2016 construction starts for projects totaling $691.7 million in value, according to Industrial Info's project database, with nearly half of that amount tied to the Power Industry. Metals & Minerals Industry and Manufacturing Industry projects also have a strong presence in the first quarter.

Click on the image at right for a graph detailing planned first-quarter 2016 project kickoffs in Ontario by industry.

Investments by the Pharmaceutical & Biotech Industry and the Food & Beverage Industry also figure prominently in planned first-quarter kickoffs. The total investment value (TIV) of the projects runs far behind the $1.16 billion in projects that were expected to start in fourth-quarter 2015. Much of the fourth-quarter TIV stemmed from an auto parts factory. For related information see September 23, 2015, article - Ontario's 10 Top-Valued Project Kickoffs in Fourth Quarter Bolstered by Auto Parts, Wind Power Demand.

The Power Industry is in the lead with seven projects worth $322 million. Algonquin Power & Utilities Corporation's (APUC) (Oakville, Ontario) $230 million windfarm in Amherst Island is expected to reach completion in fourth-quarter 2016. The project's construction start has been pushed back from third-quarter 2015. Pennecon Heavy Civil Limited (St John's, Newfoundland and Labrador) is performing engineering, procurement and construction (EPC), and Hatch Engineering (Mississauga, Ontario) is serving as consultant for the 76-megawatt facility. The windfarm will include 33 Siemens AG (NYSE:SI) wind turbine generators, each rated at 2.3 MW. For details on this construction project, see Industrial Info's project report.

The Metals & Minerals Industry wins second place, with 10 projects worth $161 million. Concerned with the future of the province's mining investments, the Ontario Chamber of Commerce recently released a report with recommendations to bolster the competitiveness of the mining sector. Among the report's recommendations is for the governments of Ontario and Canada to increase investment in northern infrastructure, which is seen as a barrier to mining development.

Northern Graphite Corporation's (Ottawa, Ontario) Bissett Creek above-ground graphite mine and mill, located at Petawawa, carries an estimated price tag of $95.51 million. The project involves construction of an open-pit graphite mine and a 5,800 ton-per-day flotation mill to produce 42,700 tons per year of graphitic flakes. The project could be completed as early as second-quarter 2017, but it has already had delays, and more changes for the timeline are possible. Northern Graphite noted in an August commentary that graphite prices continued to languish amid a strong U.S. dollar, the slowdown of China's economy and the lack of economic growth in the U.S., Japan and Europe. For details on this project, see Industrial Info's project report.

Next comes $85 million for 12 manufacturing-related projects. Canadian Pacific Railway Limited (CP) (NYSE:CP) (Calgary, Alberta) plans to spend $53 million next year on its province-wide freight track upgrade and rehabilitation program. The plan involves track, intermodal terminals, rail yards, hump yards, sidings, transloading facilities and automotive distribution. For related information, see November 13, 2015, article - North American Rail Earnings Mostly Down for Third-Quarter 2015. For details on this project, see Industrial Info's project report.

The remaining seven highest-value projects set to kick off in Ontario in the first quarter are:

• $42 million: St Catharines Hydro Incorporated's 4-MW Shickluna Hydro Power Station in Saint Catharines, Ontario
  For details on this construction project, see Industrial Info's project report.
• $40 million: Bonduelle SAS's Vegetables Plant Rebuild in Tecumseh, Ontario
  For details on this construction project, see Industrial Info's project report.
• $35 million: McMaster University's Innovation Park Emerging Technology Center Building Addition in Hamilton, Ontario
  For details on this construction project, see Industrial Info's project report.
• $25 million: Ontario Graphite Limited's Graphite Mine & Mill Restart/Expansion in Kearney, Ontario
  For details on this construction project, see Industrial Info's project report.
• $18 million: Capstone Infrastructure Corporation's Cardinal Energy Center Cogeneration Plant 14.4-MW Natural Gas Combustion Turbine Addition in Cardinal, Ontario
  For details on this construction project, see Industrial Info's project report.
• $15 million: BPC Generation Infrastructure of Toronto's maintenance outage for Unit #2 of the Bruce Nuclear Generating Station in Tiverton, Ontario
  For details on this construction project, see Industrial Info's project report.
• $12 million: PepsiCo Incorporated's potato chips plant equipment upgrades in Cambridge, Ontario
  For details on this construction project, see Industrial Info's project report.

Nearly half of the combined value of the projects ($324 million) is tied to those in the planning stages, where plenty of factors still could increase, decrease or totally eliminate the expected spending. The remaining $269 million is for projects that are now in the planning or early construction stages.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at www.industrialinfo.com.